The world's richest billionaire challenges his 5 children to find a successor

Every month, Bernard Arnault - the world's richest man - invites his five children to lunch at the headquarters of his luxury fashion house LVMH in Paris. However, this is not a normal family meal but one of the tests to choose the successor of this wealthy fashion family.

During the challenging 90-minute meal, Mr. Arnault, 74, went around the table and asked each of his children to give him a piece of advice about what he should do with his business.

Their answers will determine the future of who is qualified to take over the family's $438 billion business.

Bernard Arnault's five children, Delphine (48 years old), Antoine (45 years old), Alexandre (30 years old), Frédéric (28 years old) and Jean (25 years old), all hold important positions in the LVMH fashion empire - which built famous brands such as Louis Vuitton, Christian Dior and Tiffany & Co.

Choosing a successor from among his five talented children is not an easy decision for Mr. Arnault, and it has been a concern for decades. At a party near the Champs-Elysees, when a friend asked which of his children was likely to be his successor, Arnault replied thoughtfully: “I have five children.”

According to the Wall Street Journal, recently, billionaire Arnault has applied a tactic, challenging his children over monthly lunches to choose a suitable successor.

Citing a source close to the matter, the billionaire began the lunch by reading the discussion topics aloud from his iPad and going around the table to ask each of his children for their opinions on how they would proceed with the company and whether any of the big brands needed management changes or a change in priorities.

Since his children were young, billionaire Arnault has always prepared for the time when he will retire from the business world. He takes his children on business trips and teaches them business lessons.

Billionaire Arnault said that the decision to choose a successor will be based on performance.

Antoine, the billionaire's son, who is married to Russian model Natalia Vodianova and currently manages the holding company that oversees LVMH and the family fortune, has long been considered the most likely candidate for succession. However, there are rumors that his eldest child, Delphine, will take over after she was promoted to replace her younger brother. Delphine is currently the manager of Christian Dior, the second largest brand in the LVMH empire.

Some have suggested that investors have been unsympathetic to Delphine, while others have described her promotion to head Dior as a “little gift from dad”.

Businessman Sidney Toledano, one of Mr Arnault's friends, said he was confident that all five of the billionaire's children would be able to overcome any disagreements because they had been taught to put the interests of the business first. "They are very harmonious now," Mr Toledano said.

Meanwhile, people who know this wealthy family well also revealed that the billionaire's five children do not often talk about who is best at work to avoid conflicts.

Arnault is above all a practical man, says Toledano. “You have to pick the best when it comes to challenges. That’s what he does with his managers, his advisers, and I think that’s what he’ll do with his kids,” the billionaire’s friend says.

Bernard Arnault became the world's richest person in April, with a fortune of $210 billion, according to Forbes magazine's rich list. The French businessman first appeared on Forbes' billionaires list in 1997, when his fortune was $3.4 billion. As sales of his more than 70 luxury brands grew, Arnault entered the list of the 20 richest people in 2005, when his fortune grew to $21 billion.

Source